OneSpan Q4 ARR Hits $187M, EBITDA Margin Climbs to 30.9%
OneSpan reported Q4 revenue of $62.9M, up 3% year-over-year, driven by 11.5% ARR growth to $187M—including 12% cybersecurity and 10% digital agreements—and achieved adjusted EBITDA of $19.4M at a 30.9% margin. Management expects the Build38 acquisition to close this quarter, supporting expanded app shielding and deeper mobile integration.
1. Q4 Financial Performance
OneSpan reported Q4 revenue of $62.9 million, marking a 3% increase year-over-year, while adjusted EBITDA reached $19.4 million with a 30.9% margin. Annual recurring revenue rose 11.5% to $187 million, driven by 12% cybersecurity ARR growth and 10% digital agreements growth.
2. Build38 Acquisition Details
The company signed a definitive agreement to acquire Build38 this quarter to strengthen its app shielding capabilities and enable deeper integration with customer mobile applications. Management expects the acquisition to facilitate dynamic threat detection updates and aggregate security signals across its mobile portfolio.
3. Shift to Software and Business Mix
Management outlined a shift toward software, projecting over 80% of 2026 revenue from software solutions and less than 20% from hardware, down from over 50% in 2019. Digital agreements ARR reached $67 million, up 10%, with gross retention exceeding 90%, while cybersecurity ARR hit $120 million, a 12% increase.
4. Capital Allocation and 2026 Outlook
OneSpan approved a quarterly dividend increase to $0.13 per share, representing an 8% rise, and completed $13.1 million in share repurchases during 2025. The company ended the year with $70.5 million in cash, no long-term debt, an untapped $100 million revolver, and plans $5.5 million in 2026 sales and R&D investments.